NIB Nordic Investment Bank

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25 Jan 2017

NIB issues US Dollar five-year global benchmark

On 24 January, NIB priced a new 5-year global USD 1.25 billion bond, the Bank’s first public benchmark of 2017.

The issue has a final maturity of 1 February 2022, pays a semi-annual coupon of 2.125% and has an issue price of 99.939%, to give a spread of +23.5 basis points over the UST 2% due December 2021, equivalent to 17 basis points over mid-swaps.

The final orderbook closed in excess of USD 1.9 billion reflecting the high demand, with 51 investors participating in the transaction. Bank Treasuries and Central Banks & Official Institutions account for over 80% of the allocations. The size and quality of the orders enabled the transaction to be upsized to USD 1.25 billion, from the initially envisaged USD 1 billion.

“Timing is everything, and that’s certainly true of Nordic Investment Bank’s latest benchmark offering, managing to grab the tailwinds of the recently successful deals and yet move the ball forward, for the tightest 5-year deal in the market. The deal was aided by wider swap spreads, but more importantly, by incredibly healthy demand for a USD SSA product in the belly of the curve.” says John Lee-Tin, Managing Director at J.P. Morgan.

“We saw a good opportunity for a global USD benchmark just before the market takes a break for the Chinese New Year. We are very pleased to see that more than fifty investors were involved and we were able to upsize and tighten the price by 2 basis points during the book building. We are thankful to the global investor community for supporting NIB in our funding programme”, says Jens Hellerup, Head of Funding and Investor relations at NIB.

See a joint press release on the bond transaction PDF here.

 

Distribution statistics

 

Bond Summary Terms  
Nordic Investment Bank  
Rating: Aaa / AAA (Moody’s / S&P) 
Issue amount: USD 1.25 billion
Pricing date: 24 January 2017
Settlement date: 1 February 2017
Coupon: 2.125% payable semi-annually
Maturity date: 1 February 2022
Reoffer spread: Mid swaps + 17 bps, UST 2% 12/21 + 23.5 bps
Reoffer price: 99.939%
Reoffer yield: 2.138% s.a.
Format: Global
Joint lead managers: Citi, J.P. Morgan, RBC Capital Markets, TD Securities

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Mr Jens Hellerup, Senior Director, Head of Funding and Investor Relations, at +358 961 811 401,

 
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